Oil Holds Above $56 After Surging on Saudi Cut-Extension Plea

Futures were little changed in New York after rising 2.6 percent Friday. Oil inventories are unlikely to drain to average levels by the time the OPEC agreement expires at the end of March, Saudi Arabia’s Khalid Al-Falih said Thursday. The U.S. drill-rig count was unchanged at 738 at the end of last week, data from Baker Hughes showed.

Oil dipped slightly last week on a weaker demand outlook while Russia cast doubts on the timing of a decision to extend supply cuts led by the Organization of Petroleum Exporting Countries. Wagers on lower Brent prices rose by the most since June through the week to Nov. 14 amid uncertainty over Saudi Arabia’s push to prolong output curbs. Yet an extension remains likely, according to PVM Oil Associates Ltd.

“It is widely believed that OPEC, together with 10 non-OPEC countries, will roll over their production for the whole of 2018,” said Tamas Varga, an analyst at PVM in London.
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